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Foreign direct investment (FDI) |
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Foreign direct investment (FDI)The acquisition abroad of physical assets such as plant and equipment, with operating control residing in the parent corporation.Foreign direct investment (FDI) Similar MatchesInvestment trustInvestment trustA company quoted on the London Stock Exchange which invests its shareholders' funds in the shares of other companies.Points to note about investment trusts are:They enable private investors with limited funds to get diversified share ownership and without incurring heavy dealing costs.They enable investors to get exposure to markets that they may not be able to reach themselves (e.g. to emerging countries). Different trusts also have differing objectives (e.g. growth or income).They enable investors who don't have the skill or inclination to invest directly in companies to get the advantage of professional fund management (although see point below 6)It is easy for investors to drip-feed money into investment trusts over time by using a monthly savings plans.Unlike unit trusts, investment trusts are closed end funds. That is, there is a fixed number of shares in circulation, and the price of those shares is determined like other quoted shares - by supply and demand. This means that IT shares often trade at a discount to their Net Asset value (i.e. the value of their underlying investments) and it also makes IT shares more volatile than unit trust prices.ITs are actively managed funds which try to produce total returns better than the market average. However once management charges are taken into account, they often fail to meet this target. Hence the move by many investors to passive funds - trackers and index funds - which have lower charges. Net investment income per shareNet investment income per shareIncome received by an investment company from dividends and interest on investments less administrative expenses, divided by the number of outstanding shares. Expected return on investmentExpected return on investmentThe return one can expect to earn on an investment. See: Capital asset pricing model. Foreign portfolio investmentForeign portfolio investmentPortfolio investment across national borders and/or across currencies. Unit Share Investment Trust (USIT)Unit Share Investment Trust (USIT)A unit investment trust comprising one unit of prime and one unit of score. Further SuggestionsinvestmentInvestment company Monthly investment plan ethical investment Investment value Legal investments Return on investment (ROI) Guaranteed investment contract (GIC) Mutually exclusive investment decisions Foreign Direct Investment Value Line investment survey Investment opportunity set Investment Company with Variable Capital Bank Investment Contract (BIC) investment company Tradepoint Investment Exchange Underinvestment problem local authority investment Investment letter Securities and Investments Board Ethical Investment Research Service Normal investment practice Green field investment investment club Net investment |
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